Malaysia’s oil and gas industry aims to become more competitive
Malaysia’s oil and gas industry aims to become more competitive by investing in new technology and specialized skills
Originally published in Forship Asia News & Media
Oil was first discovered in Miri, Sarawak in 1910; an event which marked the birth of the Malaysian oil and gas (O&G) industry. Malaysia has since been a popular recipient of investments, which has brought about numerous employment opportunities, technological progress and the development of specialized skills within the local industry.
Despite fierce competition from other oil and gas-exporting countries in the region and a recent decrease in gas production and shallow water producing oil fields, Malaysia remains a major oil producer, Southeast Asia’s largest natural gas exporter, and the world’s second-largest exporter of Liquefied Natural Gas. There are in fact more than 3,500 O&G companies in the country, both local and international; and the industry is responsible for 20 to 30 percent of Malaysia’s Gross Domestic Product (GDP).
Aiming to reaffirm its place as a regional and global O&G hub, Malaysia is actively seeking to develop innovative and cost-effective technologies in order to find ways to economically and sustainably recover reserves at maturing and marginal fields.
The contraction of the Malaysian O&G sector has prompted the government to initiate reforms in order to increase production. Therefore, the government is working to encourage investments in Enhanced Oil Recovery and to boost the development of marginal and deep water fields. Malaysia has also invested in refining activities, and through eight different facilities and 539,000 barrels per day, the country is almost able to fully meet its domestic demand for petroleum products.
In 2016, the Malaysian Petroleum Resources Corporation (MPRC), working in collaboration with government agencies, introduced the O&G Innovation and Technology Collaboration platform which aims to increase technology development in the country.
Malaysia is increasing the development of robotics and drones which will help improve safety and minimize the risk of incidents on platforms, and also increase operational efficiency. Much attention is also directed towards mobile technology with the use of smart sensors designed to connect workers, who receive more and more trainings to be able to operate software systems and ensure their smooth running. The increased use of digitalization mixed with the right talent within the Malaysian O&G services and equipment (OGSE) industry will lead to both better plant reliability and less upkeep and repair.
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